📄 Glossary of Key Terms in Lean Startup Practices

This glossary provides definitions for essential terms you’ll encounter throughout the Lean Startup Methodology:

Build-Measure-Learn Feedback Loop: The core cycle of Lean Startup, emphasizing iterative development. You Build a Minimum Viable Product (MVP), Measure customer response through testing and data collection, and Learn from the results to improve your product or pivot your strategy.
Minimum Viable Product (MVP): A basic version of your product with just enough features to gather validated learning from real customers. The goal is to test core assumptions quickly and iterate based on feedback.
Validated Learning: The process of gathering data and insights from customers to confirm or disprove assumptions about your product or business model. This data should inform future development and decision-making.
Pivot: A strategic change in direction based on learnings from customer validation. This could involve modifying your product features, target market, or even your entire business model.
Customer Interview: A qualitative research method where you interview potential customers to understand their needs, pain points, and reactions to your concept or MVP.
A/B Testing: An experiment where you compare two versions of a product feature or marketing message to see which one performs better with customers.
Metrics: Measurable data points that track various aspects of your business, such as website traffic, user engagement, or customer acquisition cost. Monitoring key metrics helps you assess the effectiveness of your MVP and overall strategy.
Burn Rate: The rate at which a startup spends its cash reserves. Lean Startup practices aim to minimize burn rate by focusing on activities that validate your business model with minimal upfront investment.
Iteration: The process of continuously refining your product or service based on customer feedback. This iterative approach is central to the Lean Startup Methodology.
Agile Development: A project management approach that emphasizes flexibility and rapid iteration. Agile development aligns well with Lean Startup principles by allowing you to quickly adapt your product based on learnings.
Disruption: The introduction of a product or service that significantly alters how an industry operates or how customers behave. Many successful startups disrupt existing markets by offering innovative solutions.